BANKRUPTS AND THEIR SOLICITORS.

Waikato Times, Volume XXV, Issue 2063, 26 September 1885, Page 2

BANKRUPTS AND THEIR SOLICITORS.

Ophici\l AssKtVkk \. W. M. H\T. — As this case is one of some import. nice as determining what fees solicitors may take from bankrupts, we held it over from our last issue m order to give a full repoit. This was a summons under Section 231, of the Bankruptcy Act, ISS3, to -.how cause why Mr Hay should not pay to tho assignee the sum of £11 received by him an solicitor's fees from Robert Williamson, a bankrupt, And which was alleged to be pact of his estate. An application for refund of this sum made at the July Hitting* of the court, but was dismi-sed owing to the wronj? procedure having been adopted. Mr D>er (for Mr O'Xeill) now appealed for tho assignee, and Mr Hay in person. Mr Hay had filed in court o-thd.iv its by himself, his clerk, Mr J. B. Warner, Mrs Kobeit Williamson and Mr Hubert Williamson, which disclosed tho following' facts, mx. That during Mr Hay's absence at the Thames from the Bth to the l")tli June, Mi Williamson called at his office and requested that Mr Hay act for him in his bankiuptcy, and pai«l Mr Warnei £0 on account of fees. On Mr H lys leturn he interviewed Williamson, and informed him that he could not accept the £(>, and that this would be returned to him. Also that before he could consent to act for him he would requno that Williamson should Kive him an approved guarantee for the fees or got some friend to pay them. Tho t'li was letuined to Williamson. Subsequently Mr Warner, as attorney's cleik, received from one Peacock two sums, one of t'~> and tho other of £(i. Mr H.iy bocimc .t«.tre on tho 21-<t July l.\st th.it the £(> was pait of Williamsons estate, and tendered to the assignee t'.J 11s, being the balance of the t'li after deducting court fee-, and costs of necessiry advertisements s\ lnch he would be liable to pay as the co.se proceeded. As to the £."», it was sworn to bo money belonging to Williamsons children, which was m tho hands of Mrs Williamson. Mr Hay showed cause on the above facts, and contended that he had good authority in law for the com mo ho ha,d puisiied, and would not alter m any particular if he had to go through it again. When he found he had money which might possibly be a part of the estate, he applied to the asMgnee for inspection of Williamsons pnvate examination in order to ascertain if it were so. This was denied him. He then sent for tho bankrupt, and ha\ ing been assured that tho £(i was part of the estate, immediately tendered the balance to the assignee, after deducting what he had a right to deduct. It did not matter whether the payment under section 231 were pa*t or prospective ; he had a right to deduct them. As to the£'">, it was received from Peacock, and was no pait of the estate. Any friend of a bankrupt could pay hii bankruptcy fees. He cited a case in point from tho Law Time'', in re Stephen Walker. Mr Hay ft ated that although tho Court had made many oideis in his favour for costs out of bankrupt estates, he had ne\er received a penny from the assignee, and he had ever hraid of any creditor having roceived a dividend. Tho money he (Mr Hay) had received from tho bankrupt* friend was now wanted, and ho begged tho Court to restrain tho rapacity of tho assignee. Ho intended this merely as a coiumeiitaiv on tho Act. Mr l)yer contended that money for prospective payments could not bo letained by Mr Hay under section 231, and further, that the pi iv ate examination of tho bankrupt, which was of an unsatisfactory chaiacter, disclosed a deficiency of EKi, and the £"> was a part of thin. His Honour, in giving judgment, stated that Mr Hay had good authority undei clause 231 for deducting prospective payments, nnd that ho had not deducted as much as ho should liavo done. As to tho £'">, it was clear that it was no part of the estate, and the case that Mr Hay had quoted showed that a bankrupt's friends might propeily pay hii bankruptcy fees. He must dismiss the summons, and considered it a ca.so in which he should grant costs. They would be taxed by the registrar.

'Iho itinerary of the thoroughbred horse Kcmlworth is published in this issue. Mr J. S. Htirkland wants at Ohaupo on Tuesday next, 60 (juiet young cowjto cahcin Novcraper.